Coca-Cola takes on Soda Stream in home soda machine war

Coca-Cola has joined with Green Mountain Coffee Roasters to develop single-serving beverage pods of its full portfolio of products.

Coca-Cola has joined with Green Mountain Coffee Roasters to develop single-serving beverage pods of its full portfolio of products. (Coca-Cola)

Jenn Harris

Coca-Cola is making a move to enter the home soda machine market with a new partnership with Green Mountain Coffee Roasters, makers of the small beverage pods used in Keurig single-cup coffee machines. The partnership comes just days after Soda Stream, maker of its own home carbonation machine, took aim at the big beverage brand in a Super Bowl commercial.

In the ad, actress Scarlett Johansson says, "Sorry, Coke and Pepsi" after talking about the convenience of using Soda Stream to make soda at home.

The $1.25-billion, 10-year agreement between Coca-Cola and Green Mountain will involve making Coca-Cola-branded single-serve pods to go along with the launch of Keurig Cold, an in-home beverage system that will produce carbonated drinks, enhanced waters, juice drinks, sports drinks and teas. Consumers will be able to make drinks from Coca-Cola's large portfolio of brands, including Sprite, Minute Maid, Powerade and more.

“We believe there is significant opportunity to premiumize and accelerate growth in the cold beverage category by empowering consumers with an innovative, convenient way to freshly prepare their favorite cold beverages at the push of a button,” Brian P. Kelley, Green Mountain's president and chief executive said in a release.

Coca-Cola will also take 10% minority ownership of Green Mountain.

Are you in the market for an at-home soda machine? Would you pick a Keurig with Coca-Cola or a Soda Stream? Let us know in the comments below.

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